Robust growth inflation

14/08/2008 15:00

Dutch inflation was 3.2 percent in July, 0.6 percentage points up on June. The increase follows a 0.3 percentage points increase in May and June. Inflation is calculated as the increase of the consumer price index (CPI) relative to the same month in the previous year.

The increase is almost entirely attributable to higher gas and electricity prices. The price of natural gas was raised by 6.9 percent relative to June. Electricity prices rose by 3.2 percent. This year’s house rent increase imposed in July averaged 1.9 percent as against 1.4 percent in July 2007.

With 0.8 percentage points, higher costs of transport (fuel) and housing, water and energy contributed most to July’s inflation rate, as against only 0.2 percentage points in June. Higher prices for food and soft drinks contributed 0.7 percentage points, more expensive hotel and catering services contributed 0.2 percentage points. The category ‘various goods and services’ (e.g. insurances) contributed a substantial 0.4 percentage points to the inflation rate. Prices of recreational and cultural activities and communication services, on the other hand, had a downward effect.

The harmonised consumer price index (HICP) allows comparison between the member states of the European Union (EU). Dutch inflation according to the HICP was 3.0 percent in July, i.e. 0.7 percentage points up on June.

Eurostat, the European statistical office, calculated an inflation rate in the eurozone of 4.0 percent in July. This is the same as in June. The gap between the Dutch rate and the eurozone rate has narrowed considerably. Yet, the Netherlands is still among the countries with the lowest inflation rate in the eurozone.